Self- managed a super fund (SMSF) is a private superannuation fund, regulated by the Australian Taxation Office that can be managed by employees themselves. These funds can have up to four members, all of whom are trustees for the fund. They are responsible for the decision made about the fund and take care that the fund is always compliance with relevant laws.

SMSF setup should be done correctly so that the facilities of tax concessions can be enjoyed. There are a few basic steps involved in setting up these funds. This fund is suitable if the people managing the funds have extensive knowledge of financial and legal matters.

These funds are considered safe as SMSF audit, by an independent agency is must every year. The auditors check the funds and take care that there is no mis-utilization of finances in the fund. This legal structure sole purpose is to provide retirement benefits to their employees. These funds operate under similar rules and restrictions as ordinary funds.

The steps involved in setting up this fund are:

Establishing a trust: The company should first establish trust before registering with the ATO. A trust would need trustees, assets, identifiable beneficiaries, and intention for creating trust.

Obtaining the trust deed: The trust deed decides upon the rules and conditions under which the SMSF operates. So, it is important to have a well-drafted trust deed, prepared by a qualified legal practitioner who understands superannuation rules and regulations. The rules should e such that the trustees would have maximum control and flexibility.

The signing of declaration: The trustees and director are required to sign a declaration, which lists all rules and regulation that the prestigious members should follow.

Election with the regulator: Within 60 days of the establishment of an SMSF, the trustees must lodge an election to be regulated by ATO.

Cash account opening: A cash account with a local bank should be opened so that all the contributions, rollovers and earnings from investments can be deposited into the account.

It is suggested to take the help of professionals for SMSF so that there will be no problems in future.

Source: https://smsf-setup..com/2019/07/5-critical-steps-involved-in-smsf-setup.html